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Rubio, Colleagues Introduce Bill to Delay Flood Insurance Premium Hikes for Millions of Americans

Sep 28, 2021 | Press Releases

Washington, D.C. — U.S. Senators Marco Rubio (R-FL), Cindy Hyde-Smith (R-MS), Bill Cassidy (R-LA), and John Cornyn (R-TX) introduced the NFIP Risk Rating 2.0 Delay Act of 2021. The legislation would require the Federal Emergency Management Agency (FEMA) to delay its National Flood Insurance Program (NFIP) Risk Rating 2.0 rollout until September 30, 2022. The delay would prevent premium hikes from going into effect for homeowners and other policyholders, as well as to give lawmakers time to develop meaningful, sustainable reforms to the NFIP.
Last week, Rubio joined colleagues in a letter urging FEMA to delay Risk Rating 2.0. The new rating system, scheduled to go into effect October 1, 2021, is expected to raise premiums on nearly 80 percent of NFIP policyholders nationwide starting April 1, 2022.
“The Biden Administration’s decision to move forward with implementing Risk Rating 2.0, in spite of the serious concerns my colleagues and I have voiced about its ability to do so in an organized manner, is concerning,” Rubio said. “With 80 percent of Floridians and American policyholders projected to see increases in their flood insurance premiums, FEMA needs to be more transparent and ensure its rollout is as orderly as possible. The Senate should pass my bill to delay this new rating system while Congress develops meaningful solutions to put NFIP on track to fiscal sustainability.”
“Right now, areas of the nation, including Mississippi, are dealing with hurricane recovery on top of economic stressors like inflation,” Hyde-Smith said. “There’s no question that more needs to be done to strengthen the solvency of the NFIP, but it would be a mistake for FEMA to rush the process and to push Risk Rating 2.0 on policyholders,” Hyde-Smith said. “As the Biden administration does not wish to do the right thing and pause 2.0, we offer this legislation to delay implementation to provide time for full congressional oversight.”
“These aren’t rich people Risk Rating 2.0 will hurt,” Cassidy said. “These are middle-income and working families who depend on the NFIP to recover after disaster. This bill does what the administration refuses to do: delay Risk Rating 2.0.”
“Texans are still recovering from the pandemic, and thousands of families are struggling to make mortgage payments and keep food on the table,” Cornyn said. “I urge FEMA to delay implementation of RR 2.0 to allow policy holders the opportunity to understand and react to how their rates will be affected by the new system.”